organizational behaviour what is an organization? is a group of individuals working together to...
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Organizational Behaviour
What is an organization?
Is a group of individuals working together to achieve common goals and structured into a division of labor to better pursue those goals.
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Organizational Theory
• Is a set of laws or propositions about organization that are used to explain how people and groups behave within varied structures.
• A major component of any theory of organization is a focus on organizational development, an approach to organizational management that analyze organizational problems and their solutions.
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Two reasons for introducing organizational theory
1- To explain How & Why they behave as they do and to suggest ways to improve their performance.
2- Large-scale organization were introduced, thus emerging organizational theory.
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Schools of Organizational Theory
Four schools:-
1. Classical Theory.
2. Humanist Theory.
3. Neoclassical Theory.
4. Systems Theory.
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The Classical School of Organization Theory
They were the 1st to develop such a theory as a foundation which later scholars built their own work.
They stress the structural arrangements of organization as machine-like .
For these theorists efficiency is the most important value.
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Classical Theorists assume:-
1. There is a single best way to structure an organization to maximize productivity that can be recognized by systematically examining the way organizations behave.
2. They emphasize the need for a division of labor.
3. They also emphasize hierarchal structure, chains of command with formal systems of authority and bureaucratic behavior.
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Adam Smith
He saw Modern Organizations as “Force Multipliers”They allow for the labor of individual parts to
be combined in such a way that the sum of their efforts is greater than those of their parts.
Like a machine it allows for efficiency of productivity.
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Frederick Taylor
“Scientific Management” = Time & Motion StudiesSpecific steps & procedures of implementation
Scientific management assumes four fundamental values:-
Efficiency = max. goals + min. cost Rationality = the most direct relationship of work to the organization’s objectives Productivity = the highest poosible level. Profit = which is the ultimate goal.
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Scientific management makes three main assumptions:-1. Authority:- is best when highly centralized
at the top levels of management.2. The ideal way to perform a task is through
scientific research.3. Management’s job is :- Select ----- capabilities. Organize ----- to best perform. Train ----- to achieve objectives.
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Criticism
Critics say :-
Theorists of these theories look at workers as mere cogs, motivated only by financial incentives.
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The Human Relations school
1. They saw the classical theorists as overly authoritarian. And this suppressed creativity and lacked a focus on human beings in organization.
2. They had the same basic values:-
Efficiency & Productivity
same ends but different means.
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3- They emphasized a need to recognize informal aspects of organization.
4- Classical Theorists
Assume that workers
are:-
rational
and economically
motivated.
Human Theorist
Assume that workers
are affected by both:-• Economic• Non-economic factors
which they want to know and direct.
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Mary Parker Follett
She emphasized the psychological factors that affect people in organizations.
The principle task of an organization:-
1. Determine what it wanted its employees to do.
2. Guide and control their conduct to get them to do it.
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To do this successfully we must stop trying to suppress differences differences is a good thing, it helps is a good thing, it helps growth and development.growth and development.
She changed:-
Chain of Command
Power over
Into:-
Law of situation
Power with
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Hawthorne Effect
Was a result of a 5 year study conducted by Elton Mayo that proved that many worker- management problems were not the result of :-
1. Insufficient task specifications.
2. Inadequate wages.
* Hawthorne is an electric plant near Chicago.
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But, a reflection to social and psychological factors “Social Institutions”
Workers respond to:-
• Better working conditions.
• Attention.
This is called
“The Hawthorne effect”
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The neoclassical school of organizational theorists
Like classical theorists they still measure administrative capacity by efficiency.
But they emphasize :-
1- decision making as the heart and soul of administration.
2- organizational roles over individual roles.
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Herbert Simon
He viewed decision making as the central act of administration, and proposed that the individual decision maker is rational only within the environmental context of the particular organization.
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Thus:- The facts of any circumstance are
validated by the given set of values in
which those facts or actions occur.
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Simon’s Important Ideas
He was te first to distinguish “programmed” and “unprogrammed” decisions.
He emphasized the importance of “management information systems”.
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He pioneered improved organizational
decision making through quantitative
methods. He led the way in studying the process by
which administrative organizations make
decisions.
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The “Systems school” of organizational theorists
What is a system?
It is simply any organized collection of parts united by prescribed interactions and designed for the accomplishment of a specific goal or purpose.
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System theory emphasizes an interactive and interrelated set of elements:-
Environment Inputs (equipment, supplies, employees) ProcessesOutputs (products or services) Feedback
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Comparison
Classical theory
• Simplistic & unidimensional
• Formal & static
Systems theory
Complex & multidimensional Dynamically seeking shifting states of equilibrium.
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The systems theory differs from the three proceeding schools.
To systems theorists efficiency is not the cardinal value
Organizations are open, complex, multidimensional, etc…
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Systems Theorists Emphasize Communication & Feedback
Successful organizations need:- Adaptability to change. Integration. Coordination. cooperation over competition. Differentiation & Elaboration.
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David Easton
Outputs
Feedback
Inputs
Respond-ing to outputs